FOMC meeting November 2024: Further rate cuts? What will Jerome Powell's decision mean for India?

US Federal Open Market Committee (FOMC) is set to meet on Wednesday and is expected to make an anuncement regarding federal rate changes on Thursday. vember 2024 FOMC Meet heed by Fed chair Jerome Powell is crucial given that it coincides with election frenzy surrounding US Presidential Polls 2024. In its previous meeting, FOMC h cut rates by 50 basis points. 

FOMC meeting vember 2024 date and time

FOMC vember 2024 meeting will take place today, on vember 6 and tomorrow, vember 7. Fed chair Jerome Powell is expected to anunce outcome of meeting on Thursday, vember 7. anuncement is likely by 11.30 pm on vember 7.

FOMC Meeting vember 2024: What will a rate cut mean for Indian Markets?

Will US Fed cut rates furr? How will Indian markets react to US Fed's rate revision, if any? Market watchers and analysts are speculating a 25 bps rate cut by FOMC on Thursday. Market participants are of view that a 25 bps rate cut by Federal Reserve on vember 7 could potentially 'spur' foreign inflows into emerging markets such as India furr ding volatility to Indian equity markets.

Lower cost of borrowing for companies and customers

Whenever US slashes interest rate, RBI follows suit. A lower interest rate simply means a lower cost of borrowing for companies, which incentivises m to take up more money from bank and more investment in ecomy. A rate cut in US Fed means depreciation of Dollar in value, which in turn implies appreciation of Rupee . A Greater appreciation of Rupee means one can import more and export becomes costlier, that is, vendor will get more money for same goods. impact on import and export will have an impact on crude oil. 

Will re be good news for Indian Stock Market ?

As a thumb rule, when rates go down, borrowing becomes cheaper for companies. This might mean good news for India stock market, analysts believe. With greater cash flow available to companies, y can increase ir investment abro. A positive investor sentiment may have a positive impact on stock market. While all factors are in India’s favour, too much money supply, and excessive borrowing, can le to inflation.